Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2667

Introduced
3/17/25  

Caption

Minnetonka, Richfield, and St. Louis Park tax increment financing districts eligible uses for increment expansion

Impact

The proposed legislation seeks to widen the financial capabilities of these municipalities by facilitating greater access to funding specifically aimed at affordable housing. The bill mandates that any transfers made under this provision must benefit households within set income thresholds, ensuring that the funding supports low-income and moderate-income housing needs. This strategic allocation is designed to address pressing housing shortages and promote community stability through increased investment in local housing infrastructure.

Summary

Senate File 2667 aims to amend the scope of tax increment financing (TIF) in the cities of Minnetonka, Richfield, and St. Louis Park. The bill proposes to increase the allowable expenditure percentage for outside district projects related to TIF from the current limit to an increase of 15 percentage points. This change is intended to enhance the funding available for local housing initiatives by allowing funds to be transferred to housing trust funds, which are crucial for supporting affordable housing projects in the area.

Contention

As with many legislation focused on taxation and housing, there are potential points of contention associated with SF2667. Supporters may argue that enhancing the flexibility of TIF funding will enable municipalities to better respond to their unique housing challenges. However, critics could raise concerns regarding the long-term financial implications of such expanded allocations, questioning whether these changes could result in unintended consequences for municipal budgets or accountability in how housing trust funds are disbursed and managed.

Companion Bills

MN HF2324

Similar To Minnetonka, Richfield, and St. Louis Park; eligible uses of increment from tax increment financing districts expanded to include transfers to local housing trust funds, and use of transferred increment requirements imposed.

Previously Filed As

MN SF4947

Eligible uses of increment from tax increment financing districts to include transfers to local housing trust funds expansion provision

MN HF4404

Eligible uses of increment from tax increment financing districts expanded to include transfers to local housing trust funds, and requirements on use of transferred increment imposed.

MN HF4771

Minnetonka; special tax increment financing authority provided.

MN SF5061

City of Minnetonka special tax increment financing authority provision

MN SF1776

Duluth tax increment financing districts authorization

MN SF5254

Brooklyn Park special authority provision related to property taxes, tax increment financing, and sales and use taxes for certain projects

MN HF335

Savage; tax increment financing provisions modified, and tax increment financing district special rules amended.

MN HF5194

Brooklyn Park; special authority and provisions related to property taxes, tax increment financing, and sales and use taxes for projects provided; special tax increment financing authority provided; special property tax abatement authority provided; value capture district establishment authorized; and money appropriated.

MN HF3585

Maple Grove tax increment financing district special rules authorized.

MN HF263

Shakopee; tax increment financing provisions modified, and tax increment financing district established subject to special rules.

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